FTRAX

Franklin LifeSmart 2015 Retirement Target Fund

PRICE AND YTD RETURN As of 02/12/2016

NAV up $0.09 $10.08
POP $10.69
YTD Total return at Nav -6.49%

AVERAGE ANNUAL TOTAL RETURNS As of Quarter end 12/31/2015

Sales Charge

1 YEAR RETURN -8.18%
5 YEAR RETURN 2.84%
Since inception Inception: 08/01/2006 4.25%

KEY STATS

Investment Category Target Date
Distributions Quarterly
CUSIP 354 72P 653
Fund Number 427
Inception Date Aug 01, 2006
Total Net Assets (all share classes) As of 01/31/2016 $74.5 (M)
Distribution Rate at NAV N/A
30-Day Standardized yield

SALES CHARGE, EXPENSES, & FEES As of 05/01/2015 (updated annually)

Gross Expense Ratio 1.47%
Net Expense Ratio 0.98%
Max Initial Sales Charge 5.75%
CDSC 0.00%
12b-1 Fee 0.30%

Fund Description

The fund's investment goal is to seek the highest level of long-term total return consistent with its asset allocation. Total return consists of both capital appreciation and income with the portfolio gradually placing an increasing emphasis on income as the year 2015 approaches.

Along with an expectation to retire in or near the year 2015, the fund is designed for investors that want:

  • the simplicity of an asset allocation fund paired with a risk management approach.
  • active and flexible portfolio management.
  • a specialized multi-asset strategy team managing complex investment decisions.

Strategy Statement

"Designed for investors who anticipate retiring on or around 2015, the fund provides asset allocation which adjusts to become progressively more conservative as the target date approaches."

T. Anthony Coffey, CFA®, MBA

Management

T. Anthony Coffey, CFA, MBA

T. Anthony Coffey, CFA®, MBA

  • Joined Franklin Templeton in 1989
  • Managed Fund Since 2006
Thomas Nelson, CFA

Thomas Nelson, CFA®

  • Joined Franklin Templeton in 2007
  • Managed Fund Since 2007
James D. Macey, CFA, MBA

James D. Macey, CFA®, MBA

  • Joined Franklin Templeton in 2015
  • Managed Fund Since 2015

Overall Morningstar Rating As of 01/31/2016

Rating Category: Target Date 2011-2015

Morningstar
The fund's overall Morningstar Rating measures risk-adjusted returns and is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) rating metrics.

Historical Morningstar Rating As of 01/31/2016

Years Ratings Funds
in category
3
1 Stars
119
5
1 Stars
91
10
Stars

Morningstar Style Box As of 12/31/2015

Strategy, Benefits, Results

Strategy

The fund seeks the highest level of long-term total return consistent with its asset allocation. The portfolio manager:

  • Allocates primarily to a combination of Franklin Templeton equity, fixed income and alternative funds, based on each underlying fund’s predominant asset class.
  • When selecting equity funds, considers U.S. and foreign investment exposure, market capitalization ranges and investment style (growth vs. value) along with other factors.
  • When choosing fixed income funds, focuses on maximizing current income, appropriate to the retirement target fund’s risk profile.
  • Considers risk management factors, such as the underlying funds’ relative and absolute performance, as well as their volatility of returns over time.

Asset Allocation Approach (Glide Path)

  • Strategic: The fund will have a larger allocation to equities in earlier years, seeking greater growth opportunities. With the asset allocation strategy becoming increasingly conservative, the fund is at its most conservative allocation at the “landing point” (reached at target date); thereafter, this strategic asset allocation will generally become fixed.
  • Tactical: The portfolio manager may implement a tactical allocation adjustment of each asset class within a range of +/- 10% of the fund’s assets while varying the underlying funds (and their respective allocation amounts). The manager also has the flexibility to adjust the glide path, including modifying the targeted asset allocation percentages from time to time.

Glide Path

Benefits

Balances investment total return goals with a risk-focused approach

  • Asset allocation strategy becomes increasingly more conservative as the retirement target date nears
  • Actively managed retirement target fund
  • Broad spectrum of time-tested investment strategies
  • Specialized multi-asset strategy team

Diversified selection of investments

There are well over 100 investment vehicles, which fall within the various asset classes, that are available to the LifeSmart portfolio manager. Asset classes such as:

International
U.S. Growth U.S. Value
Fixed Income
Sector Alternatives

Investing In The Fund

What Are the Risks?
  • The investment risk of the retirement target fund changes over time as its asset allocation changes.
  • Since the fund invests in underlying funds, which may engage in a variety of investment strategies involving certain risks, the Franklin LifeSmart 2015 Retirement Target Fund is subject to those same risks.
  • All investments involve risks, including possible loss of principal. Principal invested is not guaranteed at any time, including at or after the fund’s retirement target date; nor is there any guarantee that the fund will provide sufficient income at or through the investor’s retirement.
  • Stock prices fluctuate, sometimes rapidly and dramatically, due to factors affecting individual companies, particular industries or sectors, or general market conditions.
  • Bond prices generally move in the opposite direction of interest rates. Thus, as the prices of bonds in the fund adjust to a rise in interest rates, the fund’s share price may decline.
  • Foreign investing carries additional risks such as currency and market volatility and political or social instability, risks which are heightened in developing countries.
  • These risks are described more fully in the fund’s prospectus.
  • Investors should consult their financial advisor for help selecting the appropriate fund of funds, or fund combination, based on an evaluation of their investment objectives, retirement time horizons and risk tolerance.

Minimum Investment

$1,000.00

How Financial Advisors Help You

Speak to your financial advisor about whether this fund is appropriate for you. If you don't have a financial advisor, request a referral.

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